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Crisis in the US real estate market has ruined the largest hypothec creditor
22 August 2007American company American Home Mortgage Investment Corp., specializing in the sphere of hypothec crediting, stops the majority of operations and will fire more than 7 thousand employees, becoming, thus, one of the largest victims of recession in the real estate market in the USA.
American Home has confirmed informed information that it stops the majority of the operations connected with delivery of hypothec credits and has also declared, that it will reduce staff approximately up to 750 person from 7 thousand 409 people, who worked in the company as of the end of the last year.
Experts believe that the company should begin procedure of bankruptcy in spite of the fact that representatives of the company have refused comments on this theme. At the same time American Home has informed that it will continue service of credits and management of contributions.
Crash of American Home can speak about expansion of problems in the US hypothec market as the questions, concerning credit status, now start to mention not only supreme sector, but also those creditors, who gave out loans to borrowers with quite good credit history.
In 2006 American Home has acted as the organizer of credits for the sum of 59 billion dollars, thus, the majority of loans have been given out to borrowers with quite good credit history, instead of to clients with a low credit status. More than half of these hypothec credits had a floating interest rate which could be reconsidered aside increases.
Problems in the market of the real estate of the USA have begun in the middle of 2005, and they have been caused by building boom. In the middle of 2006 sales of both new and secondary real estate in the USA have fallen to 15 %, concerning the highest previous mark.
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